Everest Re Group Ltd. has completed of its cash tender offer to buy any and all of its $400 million principal amount of 6.6 percent fixed to floating rate long-term sub-ordinated notes (LoTS(SM)) due in 2067.

Everest Reinsurance Holdings Inc., a wholly-owned subsidiary of Everest Re Group and the issuer of the LoTS(SM), purchased around 40 percent of the outstanding notes. The transaction reduced outstanding debt by $161.4 million at an approximate cost of $87 million, including payment of accrued interest. The transaction will result in an estimated pre-tax gain of $74 million ($48 million after-tax), which will be reflected in the company's first quarter 2009 results. A total of $238.6 million in aggregate principal of the LoTS(SM) remains outstanding and matures in 2067.